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Kohl’s Profits Fall 3.8%

Retailer cuts full year outlook.

Kohl’s Corp. said its second-quarter profit fell 3.8 percent Thursday, causing the retailer to miss Wall Street’s estimates and narrow its full-year guidance.

For the period ended August 3, the department store registered net income of $231 million, or $1.04 a diluted share. This compared with year-ago income of $240 million, or $1 a share.

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Quarterly net sales grew 2 percent to $4.29 billion from $4.21 billion.

Analysts expected EPS of $1.05 on sales of $4.29 billion.

Despite the earnings miss, Kohl’s chairman, president and chief executive officer Kevin Mansell touted his company’s “progress.”

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“Sales improved significantly over the first quarter and our gross margin improved over last year,” Mansell said. “Expenses were well-managed and we ended the quarter with inventory per store up mid-single digits while funding our e-commerce growth.”

Gross margin for the quarter improved slightly to 39.1 percent from year-ago margin of 39 percent.

For the full year, Kohl’s anticipates EPS of between $4.15 and $4.35, down from between $4.15 and $4.45 a share.

Wall Street is loooking for EPS of $4.36.